THE ROLE OF MODERATION VOLATILITY, UNCERTAINTY, COMPLEXITY, AMBIGUITY ON THE RELATIONSHIP OF COMPANY COMPETENCE ON FIRM PERFORMANCE

Abstract

The business world's current condition, which covers volatility, uncertainty, complexity, and ambiguity, is believed to cause a decline in the firm's Performance. Strong corporate competence is needed to continue developing and remaining sustainable. They used Structural Equation Modeling (SEM) with respondents of as many as 50 company employees. Company Competence (CC) has proven to have a positive and significant effect (β=0.702, P<0.001) on Firm's Performance (FP). The Moderating Role of VUCA Conditions (Volatility, Uncertainty, Complexity, Ambiguity) is proven to strengthen the relationship between the Company's Competence (CC) and the Firm's Performance (FP). Companies with high competence will produce high Performance, even though business conditions are increasingly high volatility, uncertainty, complexity, and ambiguity. The practical implications of this research are how important it is to improve the Company's competence amid volatility, uncertainty, complexity, and ambiguity in the business world to continue creating a growing and sustainable firm performance.